Transgaz shares up by 55 percent 10 years after listing on Bucharest Stock Exchange. The company plans to invest EUR 1.6 billion

2/6/2018

Ion Sterian, Transgaz General Manager: We have investment projects worth more than EUR 1.6 billion, which once completed will make Transgaz one of the top four energy companies in Europe

Dumitru Chirita, ANRE President: The BRUA project and the interconnection with the Republic of Moldova can be a guarantee that Romania is a pole of stability in the energy field

Lucian Anghel, BVB President: We want to see as many companies as Transgaz getting listed and become regional leaders. To support the development of Romanian companies, the Government can apply for an EU fund incentive to cover 50% of the listing cost

Adrian Tanase, CEO BVB: The company where the majority shareholder is the Romanian state is now worth almost RON 5 billion, 55% more than 10 years ago. Transgaz greatly illustrates how the state can increase its wealth by listing the companies in its portfolio

Viorel Stefan, Deputy Prime Minister: Listing on the stock exchange is an effective mechanism for transparency and reporting, a vote of trustworthiness given to the company's management to demonstrate its ability to perform

"Transgaz is currently involved in seven major gas pipeline projects and two other strategic projects that will make us turn into a multinational company at a European level. We have investment projects worth more than EUR 1.6 billion, which once completed will make Transgaz one of the top four energy companies in Europe," said Sterian.

According to the president of the National Regulatory Authority for Energy (ANRE), Transgaz projects can make Romania a pole of energy stability in the region. "The BRUA project and the interconnection with the Republic of Moldova can be a guarantee that Romania is a pole of stability in the energy field and a provider of economic and social development. I want the Black Sea gas to be used mainly in Romania, as it represents an opportunity for development and it brings added value as it is also consumed by industrial clients," ANRE President Dumitru Chirita stated.

"We want to see as many companies as Transgaz getting listed, being able to attract significant investments and EU funds so that they grow and become regional leaders. To support the development of Romanian companies, the Government can apply for an EU fund incentive to cover 50% of the listing cost on the stock market, similar to what is already happening in the UE, which would provide additional support for companies that would thus have easy access to capital, finance the development of their activity, generate investments and jobs, and all these will be transferred to the welfare of the Romanians," said Lucian Anghel, President of the Board of Governors of BVB.

Transgaz can be an example for other state-owned companies to take advantage of going public. "The company where the majority shareholder is the Romanian state is now worth almost RON 5 billion, 55% more than 10 years ago. Transgaz greatly illustrates how the state can increase its wealth by listing the companies in its portfolio," said Adrian Tanase, CEO of BVB.

Deputy Prime Minister Viorel Stefan has also underlined the advantages of listed companies. "Listing on the stock exchange is an important alternative for financing, an efficient mechanism of transparency and reporting, a vote of trustworthiness offered to the company’s management to demonstrate its ability to perform. I wish TGN shares one more decade of performance," said Stefan at the event organized to celebrate 10 years of presence on BVB for Transgaz.

Not only can the state gain from the growth in the price of shares in the companies where it is a shareholder but also the investors who bought shares. "If we also consider the dividends, an investor who bought Transgaz shares in 2008, when the company went public, would have had today a return of over 140%. If the investors had chosen to reinvest the dividends gained from TGN shares, the return would have increased by about 290%," Tanase added.

"TGN shares are for portfolio investors and are very attractive due to the business field and position of the company in the energy market, robust financial profile and the company’s ability to generate steady and predictable revenues coupled with an attractive dividend policy," said Sterian.

The value of dividends paid to TGN shareholders exceeded RON 545 million in the financial year 2016, while the gross dividend per share reached RON 46.33, which is almost five times higher than in 2007, the year before the listing of the company on the Main Market of BVB.